Interpac Business and Migration Solutions Melbourne Australia

（February 2,2012)

WAM Capital chief Geoff Wilson says the month-long rally in equities has further to go despite the company reporting a net loss of $2.6 million for the six months to December 31.

"We think that the market will probably be up by 5 per cent from here, although there are still a number of storm clouds on the horizon" Mr Wilson said.

"Everyone had been very negative and the market had been oversold. We don't believe anything will necessarily be resolved but sentiment will move from everyone being very negative to more neutral."

Mr Wilson emphasised that the company was in great shape, highlighting the half a cent increase in the interim dividend to 5.5c to deliver a fully franked yield of 7.2 per cent.

The shares go ex-dividend on March 9 with payments made on March 23.

Changes to the Corporations Act introduced by the government in 2010 meant that listed investment companies such as WAM Capital were able to more easily fund dividends provided they had sufficient franking credits and the distributions were reasonable.

"The directors are confident enough with how the company was positioned to increase the dividend by 10 per cent," Mr Wilson said. "We are also sitting on enough cash to take advantage of any opportunities that present themselves."

With an average equity weighting of 55 per cent over the past six months, the value of the company's portfolio fell 1.3 per cent versus a fall of 11.4 per cent in the A&P/ASX All Ordinaries Accumulation Fund.

Specialising in small and mid-cap value stocks, WAM Capital's allocation to cash in recent times has been as lows as 30 per cent in March 2009 and as high as 75 per cent in November 2009.

The result compares with a net profit of $18.9m achieved by Wilson Asset Management's flagship listed investment company in a benign but no less volatile environment for equities in the previous corresponding period.

WAM Capital fell roughly in line with the broader market and at the close of trade it was down 1 per cent or 1.5c to $1.50.
（source：theaustralian）